On Tuesday afternoon, the Reserve Bank of Australia lifted interest rates by another 25 basis points, taking the official cash rate to 2.85 per cent.

Provided lenders pass on the hike to borrowers, the latest interest rate hike will add more than $114 to monthly repayments for a typical $750,000 mortgage.

Numbers crunched by Compare the Market found the cumulative 275 basis points in rate hikes since May will add around $1205 to the average 30-year $750,000 loan.

“Unfortunately, there aren’t many winners this Melbourne Cup Day with another whack to the household budget when we’re already feeling the pinch,” Compare the Market’s Stephen Zeller said.

A survey by the comparison outfit found 50 per cent of Australians were worried they wouldn’t be able to afford rising mortgage and rental payments in the next year.

Borrowers may suffer when interest rates rise but savers enjoy a boost to the interest rate on their savings accounts if banks pass on the hikes.

NAB has not yet announced higher rates for savers.

RateCity research director Sally Tindall said NAB was likely waiting to see what the other big banks would do.

“By keeping quiet on savings rates, NAB is strategically holding its cards close to its chest, waiting for the other three big banks to reveal their hands,” she said.

“Let’s hope the other three big banks come to the party for savers and pass on the full RBA hike.”

Reserve Bank governor Dr Philip Lowe yesterday warned the pain for home owners is far from over after delivering the rate rise.

“The board expects to increase interest rates further over the period ahead,” he said.

“It is closely monitoring the global economy, household spending and wage and price-setting behaviour.”

Lowe said the central bank had already lifted interest rates “materially” since May, and that it would take time for higher interest rates and inflation to bite.

“The board recognises that monetary policy operates with a lag and that the full effect of the increase in interest rates is yet to be felt in mortgage payments,” he said.

The central bank has also added around 0.25 percentage points to its peak inflation forecast, and now expects it to reach eight per cent before the end of the year.

“Inflation is then expected to decline next year due to the ongoing resolution of global supply-side problems, recent declines in some commodity prices and slower growth in demand.”

The central bank expects inflation to simmer down to 4.75 per cent next year and a touch over three per cent in 2024.

The central bank has also revised its growth forecast down a little, and now expects growth of around three per cent this year and 1.5 per cent in 2023 and 2024.